Bitcoin is Bullish; Is this a Bull Trap Again?
Bitcoin is all over the place with its recent rise in price over $12k for a brief time period in the past two days just to steeply dip and test supports as low as $10k immediately. However, the momentum that followed is drawing an uptrend against the US Dollar from Month to Date low marked at $10k to current trading around $11.8k.
Over the past two days, the bullish candlewicks have led to a positive sentiment regarding Bitcoin and its price, which otherwise was seen consolidating and correcting downwards. Additionally, Bitcoin has been luring a massive investor group due to its underlying technology and an urge to invest in digital assets ahead of traditional stocks, bonds, ETFs, etc.
#Bitcoin is pumping while stocks are dumping.
This might be the beginning of the decoupling.
Imagine the amount of money looking for a digital safe haven soon.$BTC is going to The Moon 🌙
— Carl From The Moon (@TheMoonCarl) October 20, 2020
However, the previous spikes in Bitcoin’s price have been nothing but a bull trap leading to massive dump and price plummeting to major supports. Moreover, price consolidation has been the catch this year so far over the past quarter wherein; Bitcoin accumulated between $9k to $10k for as long as 11 weeks. The price will appear promising if it trades persistently above $12k extended by the current uptrend as per BTC price prediction.
#bitcoin is looking very bullish right now, a big break could happen way sooner than most imagine.
— Lark Davis (@TheCryptoLark) October 20, 2020
Bitcoin Price Analysis
Bitcoin’s trading price holds strict support at $11,300, while the major and near-term target lies at $11.9k, followed by a persistent trade above $12k, to ignore the bull trap.
After a volatile quarter, Bitcoin price seems to have taken off for a near-term Bull Run in the ongoing month and last quarter unless it is not a sweet trap to increase “In the Money” of potential and current investors. It was just yesterday when Bitcoin price crossed above $12k for the 5th time in the ongoing year but is back to pulling below $12k in no time after spurring.
With bullish candlewick, BTC is already breaching the upper band after a steep rise from $11.4k yesterday. Moreover, as the Bollinger Bands widen moderately, it is likely to face moderate volatility. With complete bullish sentiments, market capitalization’s largest cryptocurrency is retaining support from MA50 & MA200 at $11.4k & $11.1k, respectively, on the 2-hourly chart.
The MACD reflects a bullish crossover, which is visibly positive through the current price movement, and therefore, the MACD line crosses above the signal line. The RSI is totally inclined towards the overbought region due to increased demand and lies at 66.91.